It's a strange paradox though.
If you think about supermarkets (step in with the details nakkers) which is important because combined they're massive employers.
Tesco wants to increase profit margins to make it more competitive, so it limits wages, adds flexible working zero hour contracts etc thus decreasing it's wage costs and increasing it's profitability. Shares rise. Asda, Lidle, sainsburys morrisons etc follow suit. Now over the course of months/years tens of thousands of people have that little bit less to spend on Wine,luxury food than they did before. So sales go down.
Efficiency in that way spread out over a sector damages everyone in the long term.
(PsychoChomp, Thu 13 Jun 2013, 13:21, Reply)